Odfjell SE : Odfjell SE : Continuing weak chemical tanker market and still
significant losses at Odfjell Terminals (Rotterdam)
EBITDA of USD 17 million reflects both a continued weak chemical tanker market
and still significant losses at Odfjell Terminals (Rotterdam).
The chemical tanker market improved seasonally towards the end of the year.
Volumes shipped remained on par with the previous quarter. Earnings on a
time-charter basis were up 7.8% compared to third quarter. Freight rates per
tonne shipped increased by about 10%. The average price on bunkers purchased
in the quarter remained high.
In fourth quarter, with the exception of Odfjell Terminals (Rotterdam) (OTR),
the EBITDA for our tank terminals remained on par compared with previous
quarter. In December we announced that we had signed of a Letter of Intent
with Lindsay Goldberg LLC to expand the existing joint venture to essentially
include all of our tank terminal business. The proposed transaction will
significantly increase the capitalization of the tank terminal division and
will enable us to jointly embark on an ambitious and accelerated growth
OTR has reached agreements in principle with the Unions and the Works Council
with the objective of finalizing the negotiations regarding downsizing and
reorganisation of the work force.
The re-commissioning project at OTR is slightly delayed relative to earlier
plans. 717,000 cbm is approved for usage per end of January 2013. We now
expect 1.2 million cbm to be available for commercial use by end of Q2 2013.
The supply/demand picture within the chemical tanker segment continues to move
in our favour. However, favourable yard prices and modern fuel efficient
designs may lure investors to contract new tonnage. The supply overhang, on
the other hand, may be prolonged due to reversal of lost capacity through
slow-steaming and low utilisation.
Our main concerns relate to challenging markets also in 2013, high fuel costs
and potential setbacks in the global economy. On the tank terminal side we
have witnessed higher activities and inquiries for storage. We expect improved
earnings in our tank terminal division in the first quarter of 2013.
Please find the full 4th quarter 2012 Report and Presentation attached.
For more information please contact:
Jan A. Hammer, President/CEO Odfjell SE
Tel.: + 47 55 27 00 00
Terje Iversen, CFO Odfjell SE
Tel.: + 47 55 27 00 00
This information is subject of the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.
4Q Presentation 2012
4Q Report 2012
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information contained therein.
Source: Odfjell SE via Thomson Reuters ONE
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